?Repudiate? means refuse to pay an illegal or unenforceable debt.??? Both Republicans and Democrats plan to double NJ gasoline tax after November elections?no matter who wins.??? They say we need more money to ?fix our roads and bridges.?? Not true!
Our current 14.5 cent/gallon gasoline tax may be low?but it still brings in $1.6 billion a year?more than enough to build and fix every bridge and highway in our small state.
Even though gasoline tax is low, we pay more at the pump than people in many states who have better roads and lower tolls.?? That is because New Jersey business, sales, and property taxes, insurance, and other business costs are so much higher.
Both Republicans and Democrats want to double the gasoline tax after the election so they can bail out their Wall Street friends who issued $16 billion of tax-free, ?high interest junk bonds that are NOT guaranteed by taxpayers.
For past 30 years, Republican and Democrat Governors and legislators ?bought political support by ?leveraging? gas tax money to spend billions of dollars on ridiculously expensive and politically connected projects that had nothing to do with highways.?? One of them was the mostly empty ?Riverline? train between Camden and Trenton.
To do this, they set up a dummy agency called the ?NJ Transportation Trust Fund Authority?, that borrowed $16.5 billion by issuing tax-free junk bonds on Wall Street.?? That agency then promised to pay that money back with money collected from the gasoline tax.???? But instead of paying that debt down, ?this ?Trust? Fund Authority ?leveraged? even more.?? Now, they promised to pay almost every dollar we now pay in gasoline tax to Wall Street bondholders for the next 30 years!
But they have a problem–our NJ State Constitution.?? They had no legal or moral right to make that promise!?? In 1837, there was a near total economic collapse in New Jersey.?? It was caused by the same out-of-control debt and corrupt, ?pay-to-play? politics we have today.
In 1844, the people of New Jersey adopted a new State Constitution to fix that problem.?? A key part of that Constitution was that state government could no longer borrow money, unless the debt was approved by a vote of the people.??? That is why we vote on ?Open Space? and ?Green Acres? ballot questions from time to time.?? When our politicians followed spirit and the letter of that State Constitution, New Jersey had no debt, low taxes, and a booming economy. ? That part of our 1844 Constitution is also part of the 1947 State Constitution we have today. ?
During the past 40 years, Republicans and Democrats came up with gimmicks to borrow money without voter approval.??? Instead of having state government borrow directly, they created dummy authorities.??? Some 13 years ago, Bogota Mayor Steve Lonegan tried to stop this by suing Republican Governor Christie Todd Whitman and taking his case to the New Jersey Supreme Court.
In that ?Lonegan? case, the NJ Supreme Court failed to not stop these dummy authorities from borrowing money without voter approval.?? However, it did rule that taxpayers could not be forced to pay this money back.?? The Supreme Court also required that ?Lonegan Language? be written on every junk bond issued by a state authority without voter approval.?? That language clearly warns investors that the bonds are NOT guaranteed by the full faith and credit of New Jersey taxpayers.
Some states have high income taxes, but low sales taxes.? Others have high sales taxes, but low property taxes.?? Only New Jersey has high income taxes, high sales taxes, high business taxes, and high property taxes!?
The only way to turn things around is to stop borrowing money, and cut taxes.?? This is why our New Jersey State Constitution is written that way.
The place to begin is to fight ANY hike in the state gasoline tax!?? Demand that all $1.6 billion be spent each year to make our highways and bridges safe.??? We can do this if we ?repudiate?, that is refuse to pay the unconstitutional debt of the NJ Transportation ?Trust? Fund Authority.?? Now is the time!
Please contact us for more information.? Thanks.? www.libertyandprosperity.org